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The comparative balance sheets for 2013 and 2012 and the statement of income for

ID: 2493753 • Letter: T

Question

The comparative balance sheets for 2013 and 2012 and the statement of income for 2013 are given below for Dux Company. Additional information from Dux’s accounting records is provided also.

DUX COMPANY
Comparative Balance Sheets
December 31, 2013 and 2012
($ in 000s)

2013

2012

  Assets

  Cash

$

60

$

39

  Accounts receivable

50

74

  Dividends receivable

5

4

  Inventory

90

85

  Long-term investment

52

46

  Land

95

75

  Buildings and equipment

175

220

       Less: Accumulated depreciation

(52

)

(90

)

  

$

475

$

453

  

  Liabilities

  Accounts payable

$

37

$

64

  Salaries payable

2

7

  Interest payable

10

4

  Income tax payable

10

11

  Notes payable

20

0

  Bonds payable

85

60

       Less: Discount on bonds

(3

)

(4

)

  Shareholders' Equity

  Common stock

210

200

  Paid-in capital—excess of par

24

20

  Retained earnings

88

91

       Less: Treasury stock

(8

)

0

  

$

475

$

453

  

DUX COMPANY
Income Statement
For the Year Ended December 31, 2013
($ in 000s)

  Revenues

     Sales revenue

$

350

     Dividend revenue

5

$

355

  

  Expenses

     Cost of goods sold

$

235

     Salaries expense

34

     Depreciation expense

7

     Interest expense

8

     Loss on sale of building

2

     Income tax expense

$

44

330

  

  Net income

$

25

  

  

Additional information from the accounting records:

a.

A building that originally cost $60,000, and which was three-fourths depreciated, was sold for $13,000.

b.

The common stock of Byrd Corporation was purchased for $6,000 as a long-term investment.

c.

Property was acquired by issuing a 13%, seven-year, $20,000 note payable to the seller.

d.

New equipment was purchased for $15,000 cash.

e.

On January 1, 2013, bonds were sold at their $25,000 face value.

f.

On January 19, Dux issued a 5% stock dividend (1,000 shares). The market price of the $10 par value common stock was $14 per share at that time.

g.

Cash dividends of $14,000 were paid to shareholders.

h.

On November 12, 1,000 shares of common stock were repurchased as treasury stock at a cost of $8,000.

   

Required:

Prepare the statement of cash flows for Dux Company. (Hint: Use the T-account method to assist in your analysis.) (Do not round your intermediate calculations. Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.

DUX COMPANY

STATEMENT OF CASH FLOWS

CASH FLOW FROM OPERATING ACTIVITIES:

CASH INFLOWS:

FROM DEVIDEND RECEIVED                    ??????

FROM CUSTOMERS                                     ??????

CASH OUTFLOWS:

TO SUPPLYERS OF GOODS                          ??????

TO EMPLOYEES                                              ??????

FOR INTEREST                                                      ??????

FOR INCOME TAXES                                           ?????

PLEASE HELP ME WITH MY        ?????

OTHER PART OF THIS TABLE I SOLVE, BUT THIS PART I CAN’T DO(((((

The comparative balance sheets for 2013 and 2012 and the statement of income for 2013 are given below for Dux Company. Additional information from Dux’s accounting records is provided also.

Explanation / Answer

Answer:

DUX COMPANY Statement Of Cash Flows $ in thousand Cash Flow From Operating Activities: Cash Outflows To Supplyers Of Goods -262.00 To Employees -39.00 For Income Taxes -45.00 Cash Inflows From Customers 374.00 Cash Flow From Investing Activities: From Dividend Received 4.00 From sale of building 13.00 For common stock of Byrd Corporation -6.00 For new equipment -15.00 Purchase of land -20.00 Cash Flow From Financing Activities: Cash Outflows For Interest -2.00 From issue of Bonds 25.00 From issue of common stock 14.00 For repurchase of treasury stock -8.00 For Dividend -14.00 Total cash flows 19.00